The FASB has issued a proposal that would require certain crypto assets to be measured at fair value.
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- On March 23, 2023, the Financial Accounting Standards Board (FASB) issued a proposal that would require entities to account for holdings of certain crypto assets – for example, bitcoin and ether – at fair value.
- Under the proposal, holdings of crypto assets in the scope of the proposed guidance would be measured at fair value at each reporting date with changes in fair value recorded through earnings.
- The proposal also would require entities to provide extensive disclosure about crypto assets measured at fair value, including an annual rollforward of an entity’s crypto asset holdings.
- Entities would adopt the proposal using a modified retrospective approach, recording a cumulative effect adjustment to equity (or net assets) as of the beginning of the year of adoption. Early adoption would be permitted.
- Comments on the proposal are due by June 6, 2023.